Government Shutdown Coming To An End?

GOvt ShutdownSeven days ago, the shutdown of the United States Federal Government began.  It is the first shutdown in twenty years.  The meaning of a government shutdown is that all federal services deemed “unnecessary” are currently not operating until further notice.  This includes national parks, the departments of the government, NASA, the White House, the National Archives, and the Intelligence Agencies, as well as more services.

It is estimated that a shutdown lasting three to four weeks could result in an increase in debt of around $55 billion.  The lost wages of government employees alone could amount to $1 billion per week.  The longer the shutdown remains unresolved, the greater the debt will increase for the United States.  Also, the Gross Domestic Product (GDP) of the United States could be decreased by up to 0.9% during the shutdown in its entirety.  In comparison, in the entire year of 2013, the GDP has grown by less that 2%, demonstrating how large the decrease really is.

Although the beginning of the shutdown was the result of the Obamacare plan being put into place, currently the issue with the reopening of the government is a disagreement within the Congress.  They have to pass a bill which would raise the debt ceiling, in order to prevent the need for a default.  This default would possibly occur on October 17th, when, if the shutdown is still in place, the government would run out of its borrowed money.

If the government shutdown continues for much longer, drastic results could occur, however it is impossible to say what exactly these results may entail.

 

Sources:

http://media.npr.org/assets/img/2013/09/23/ap348047175615-d47de9217c5034e831f6dea1802bbd6b587a9139-s6-c30.jpg

http://www.usatoday.com/story/news/politics/2013/10/01/government-shutdown-congress/2899657/

http://www.reuters.com/article/2013/10/08/us-usa-fiscal-idUSBRE98N11220131008

http://www.usatoday.com/story/news/politics/2013/10/07/debt-limit-denial/2937087/

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